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Everything posted by stowintegrity
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This week has brought our shop more than our fair share of ups & downs. Some big jobs have gone on through completion without so much as a hiccup, while some small jobs have seemed to be nothing more than a painful distraction from "real" business. This one story, though...I really need some encouragement. Please tell me where we've gone wrong, or how we might boldly change our process to avoid these situations, because I've heard just about enough from whiny, underhanded customers. The facts: A gentleman brought his vehicle in because he claimed he was hearing a squeaky noise. He couldn't tell us anymore except that he though it was brake-related. He made it sound as though it pierced his eardrums and woke the neighbors. Anyhow, we road tested the vehicle, only to find that we weren't in fact, hearing any squeaking. His brake inspection revealed 2 things. First, his front brakes had been recenlty serviced. There were new rotors & new pads (along with a fair share of dust). The rear brakes had LONG since been serviced, and the pads were at 2-3mm, with sever piutting/grooving on the surfaccr of the rotors. The recommendation: We told him we didn't hear the squeaking, however, noted the new brake parts in the front, along with the excessive brake dust. He only acknowledged that he had the brakes serviced recently somewhere else. We told him that as a part of the brake inspection, we used our shop air to blow out the loose dust, and told him that if he was certain that the noise he was hearing was in his front brakes, to take it back to where he had them serviced, as there may be an eligible warranty service due him. As for his rear brakes, we shared the measurements, and he approved the installation of rear pads & rotors. We performed the service, and off he went. The followup: We called him as a matter of protocol the following week. He acknowledged that the squeak seemed more persistant, and was unhappy that we didnt take care of it. We empathized with him, and encouraged him to come back for a free road test/reinspection, thinking that if it was more persistant, it would mke the noise while he rode with us. He seemed ok with that and schduled the appt for today. The comeback: He didn't show up. He didn't call. He didn't answer the phone when we called back. He hasn't responded to our voicemail message. The review: He posted a low review for us online indicating that he came to us because he told us his front brakes were making noise, and we sold him work that didn't take care of it, and that he "probably didn't need at all". So....did we do something wrong? Should I have been adamant about the obviously cheap pads the other shop used? Should I have mentioned that we don't install "economy" brake parts? How about the response to his review? I've decided that I don't want him to come back, based on either a complete lack of respect for how hard we work, or out of genuine ignorance to the way things work. Someone else gets to do the brake service, but WE get a low review because we can't hear the squeak? Someone...please tell me if I'm crazy here, because I'm getting ready to put on my angry eyebrows and post a response to his review...
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This is the first time I've ever heard anyone actually compain about this specifically, and I'm really glad to hear the input. To continue with the same verbage, we have a couple of "Gravy Techs" at our shop, too, but I haven't heard my other, more experienced staff complain much about it. I've seen what it's like for some of them to be tied up with, or "married" to a job...or wrestling with a job, because it's a more involved one, or one that requires more patience, skill, equipment, or experience. The pattern I'm hearing, though, is that someone in that more skilled position is unhappy because they don't feel like they're getting paid enough. Whether their rate isn't wht it should be for what they bring to the table, or they're expected to do work that they're not getting paid the time on. Either way, this doesn't seem like a real complaint or problem that should be directed at a "lesser" experienced employee. I agree with Joe - take your concerns to the guy thats writing your paycheck, and discuss them with him or her in a frank, but professional way. I'm a firm believer in letting your value speak for itself, but sometimes it's ok to remind the boss if things start to seem a little lop-sided. (He DOES have a lot on his plate, too, right?) I'm not afraid to admit that if I knew I could fill each of my bays with a dozen fluid flushes & nothing but the simplest, high-dollar, easy in & out brake jobs & tune-ups....well...I think I'd definitely restructure the bench strength of my staff, and pay a competitive "B" rate that was suitable for that kind of work. If I was doing a million dollars a year in just those kinds of services, I might just start turning away the more complicated stuff. Let's face it, though - that's not the nature of our business. I didn't put up a building and say, "This is where I'm gonna be the brake service king of the city". We opened our doors and vowed that we were going to maintain a focus on our customers and their needs so ferocious, that the resulting loyalty would be something that NONE of our competitors could ever touch, or begin to try to take away from us. We saw that building and said, "This is where I'm going to work everyday, and serve the needs of as many people as I can, professionally." There's lots of parts on a car. Some of them, even I can replace. But it takes a staff of profesisonals, all with carying levels of skill, in order to even come CLOSE to being that 1-Stop shop everyone dreams about. Just one man at the helm of a wonderful adventure.
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I know my posts tend to be a bit long winded, and I apologize for that. In this case, however, my opinon is simple. Spending ANY money to pay for additional advertising my auto repair shop in ANY printed phone book is a waste of money. It's all online anymore, folks. Just one man's short opinion.
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We have a phone shopper log sheet on a clipboard thats grabbed the second we know its a price shopper we're talking to. We use it periodically to "crunch the numbers", and see who is the most effective at getting people to set an appointment, KEEP an appointment, as well as the eventual sales $ totals. I can't even begin to try what you've suggested, though, Gonzo, because we simply refuse to give prices out over the phone. I can tell you, however, that we log about 12-15 price shoppers a week, successfully getting 85% or more of them to come in so we can do things the way it makes sense, the way that's in their best interest, and without any misunderstandings, guesses, or mistakes. I LOVE dealing with price shoppers, and am sometimes handed the phone with a particularly difficult one who thinks if we don't give him a price on the phone that he has grounds for a lawsuit. It doesn't matter, in the end because the numbers dont lie...when he comes in for his appt, I usually find out the REAL reason he was hesitant to do anything but GET PRICES, GET PRICES. I am SO waiting for the opportunity to fit in the line from Tommyboy somehow about "taking a butcher's word for it" when it comes to knowing what's wrong with his car. I know,...not a perfect parallel, but I can't wait for the chance to let fly, like Mussolini from the balcony. Today was delightful - Lots of people coming in, lots of new faces, and of course, lots of genuine, down-to-earth, warm-hearted customer service. I love being a service manager.
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Earlier in the company's history, when our staff was more of a skeleton crew, we implemented the use of "outside" phone reps. One great source of this kind of person is the wife, Aunt, or grandmother of an existing employee. In both cases, we invited them in, gave them a desk, and after some basic training, gave them the script, and let them practice a few times until they were comfortable with the language. The important thing to keep in mind is that the person calling only need be a warm, caring voice...not a mechanic, nor someone who is intimately acquainted with the previous wervice performed on the car. My mother made calls for us for a good while. It was nice having her in the store, she was happy to sip tea, and "work the list", and soon grew accustomed to how to handle just about any response she received from someone without the anxiety of not knowing "car repair stuff". Any call that resulted in a customer requesting future service, or requested a comeback visit to address a concern they had ONLY needed to know that the nice lady on the phone was kind enough to have called, and put in a request for one of the service writers to post their concerns on our schedule, and would furthermore csall them back to confirm the details/appt. Mom's not with us anymore. I mean...she's alive, and still loves her son's twisted humor, but she's not making calls anymore. She was awesome, but once the number of call lists began to grow, we REALLY needed someone "in-house" who knew much more about the nature of the services we offered.
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I like the good deed wisdom, Phynny...I'm using that one sometime. I've been waiting for someone to make this point because I'm guessing many of you will agree, but it's important FIRST to make sure we're all talking about the same person, calling. I will agree with your case-by-case approach, Phynny if you're contending that on a case-by-case basis you need to determine IF the person is a genuine price shopper, but once the answer is a resounding "YES", then I say "Down with giving pricing on the phone". Two people call me, Mr. Smith, and Mr. Jones. They are both asking for a price over the phone, and I happily give Mr. Smith a direct answer to his query, but Mr. Jones is told I need to see the car before I'm able to give him the accurate info he needs. Does that sound like it contradicts anything I've already said on this topic? Nope. Mr. Jones has never been to me before (or maybe he HAS, and he's proven to be a "PIA" or a "$SHOP" which are system codes we use to categorize customers to assist future advisors when they answer their calls. Mr. Jones is calling 10 shops, looking for the best price. He's happy to tell you so, so you better give him a good one, or else you might lose his business forever, Mwa-hahaha... Mr. Jones is a price-shopper. Mr. Smith, however, has been to us more than a couple times in the past. He doesn't spend a whole lot each time, maybe only a few hundred dollars, but you've got enough history (or notes) in your system to know his wife's name is Julie, and he has 2 kids in college. (who's cars you also get to service.) Mr Smith, you see, has a big party coming up (for Julie, probably), and wants to know how much that water pump may cost him so he can make sure he's got enough to pay you, what with all the balloons he has to buy, along with the cake & ice cream. Mr. Smith is not a price shopper...he's a customer that needs to get an idea of what his visit to your shop MIGHT cost him, so he can plan for the investment in your service. "Well Mr. Smith...you know us well enough to know how we operate. I don't want to mislead you or make any promises, but I know how it is sometimes when you need to juggle some bills, and I appreciate that you're thoughtful enough to want to make sure you'll have enough to pay the nice mechanic who's been so good to you. Your water pump, if that is INDEED what you'll need, might represent an expense of $XX or more, but you can be sure I'll be as competitive on pricing that service no matter what you end up actually needing." And by the way...if you DON'T keep a stock of anniversary, birthday, graduation, and general congratulations cards on hand...you're missing the boat. We keep them in the back room, and when we hear the word grad party, we find the time to write a few nice words in the card, slip in a free oil change certificate along with our business cards, and present it to them when they're checking out. Killer move.
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Management Success
stowintegrity replied to babyhydro's topic in Management Coaching, Business Training, Consulting
I served as an on-site business & marketing consultant to several auto repair facilities before diving in and becoming a menber of the independant auto shop owners' club, and have run into my share of shops that had hired MS to assist them brior to coming on the scene. The generalized view of the small group of shop owners who had experience with them is easy to summarize as such: 1. They will teach you rather quickly what you're doing wrong, and very plainly, what you should do to remedy the issue. 2. Then you'll spend the remainder of your contract, wishing you could find a forum such as ASO to confer with others who are faced with similar challenges and get friendly, boldly honest advice, for free. As a consultant, I try to be as frank with clients as I can, in that not EVERYONE in business needs to hire a consultant, nor will everyone benefit equally. Some of my advice lends itself only as a reminder of what my clients already know, but needed a reminder from someone who's not afraid to tell the boss when he/she is missing the mark. The other advice is generally the open waters...a place where the effectiveness of my advice is purely a factor of how much I'm trusted by the client. It's easy to give advice, even from a position of, "Hey, I've been there, and here's what I did to fix that". When it comes to deciding whether or not you need a consultant, the best advice anyone can offer is just to ask you to be honest: Are you already doing absolutely EVERYTHING you know to do in order to maximize your success, but still struggling to push beyond, to the next level? If you're already doing that, and you think you're ready to hear 100 ideas, and expect 95 of them to be news to you...then maybe a consultant is the best way to go. The shops that found that MS only served as a "big brother" to remind them of what they already knew 95% of the time are the ones that are generally unhappy with their investment. If you know what you need to do...then just DO it. If you've tried your very best, worked as hard as you can, but still need the help...call someone. Just one man's opinion. -
Our "engagement" jumped almost immediately from 8-10% to more than 65%. That is, we made actual contact with a much larger percentage of people, and they responded by engaging us with a response such as a phone call, scheduling a future, recommended service, an email, posting a review, or even a text message.
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SMMotors, We decided from the beginning that we were going to handle genuine price-shoppers differently than pretty much anyone else we interact with for a couple of reasons, and that let our "board" to decide that if the difference between getting a price-shopper in the door or not seeing their smiling face at all was to offer a "quick peek" inspection, then we felt that was the circumstance that warranted the risk of the giveaway. We've managed to do an adequate job building value into the "Comprehensive Vehicle Inspection" program we have, and that has a fee associated with it for even our most loyal customer. The babies, the newborns, the people who don't know how wonderful it is yet to have us on their side....well, we'll offer them 5-10 minutes of our time. We decided that it would be well worth the risk/investment, and it has paid off handsomely as our price shopper conversion rate, when we can get someone in front of us to shake our hand, is more than 85%. I appreciate that you've read some of my posts, and if you are able to feel like you know a little about how we operate, I just want to remind you of this: In the end, after my technicians ahve been generously paid for all their time inspecting/servicing the vehicles we see, we end up with weekly margins of as high as 65-68%. So....it may be a freebie quick peek, but in the end, everyone's getting paid. Thanks again for taking the timeto read my commentary. I've wondered if I just didn't come off sounding like a guy who needs therapy, not a professional forum to post to!
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Fair enough, Joe. Here's one that will likely have someone throwing stones at me, but as its on topic, I'll toss this out and see what you think. (I have a garbage can lid at the ready as a trusty shield) I am NOT a mechanic by trade, nor do I have any such training or experience, so at times, I find myself able to play the "rookie" card when I make a mistake, or when it's easily proven that in the end, it's not my own skills, but those of the talented men & women technicians I employ, that my more technical-minded customers appreciate. When dealing with genuine price shoppers, I've found it to be helpful in educating my prospects about value of the free quick-peek inspection to add just the right amount of "reasonable doubt" into the proposition on the phone. For instance, if they want a price for a new alternator & belt on their car, and the conversation came around to it, the conversation might go like this: Them: "...my husband just said to call around for pricing" Us: "Oh, I see. Well, I'll do the best I can. Ok, let me ask you this - do you need a 90amp or a 10am alternator?" Them: "I have no idea" Us: "I see. Ok, do you need a serpentine belt or do you have a separate v-style belt for your power steering and A/C?" Them: "um, again...I don't know" Us: "Ok, well, since I've never seen your car before, it's pretty hard to male sure I'm giving you the very best information. I'd be happy to print out an estimate that will be EXACTLY what your service will cost, but I'd need to take a quick look under the hood. I can promise that it won't cost you a penny, and you'll have no obligation to us. You can just enjoy a cup of coffee, itll take about 10 minutes, and if you don't like what we have to say, you can free to ball up our estimate and toss it back at us, and we can still be friends." My simple point is that sometimes I ask questions that I don't even know the answer to, and frankly not only don't I CARE at that moment, but it helps me to be able to make them understand that it doesn't matter because any reputable repair shop will want to see the car before giving them the very best info, and without any obligation. For all I know, there isn't more than one option on the alternator & belt but unless I look it up...I can make as much wiggle room in the conversation as possible. After all, I think it's in their best interest to come to US instead of taking a chance on service anywhere else.
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Mspec, Not at all. The most revealing truth is that there were very little reports of "emotion" like you suggest. What we learned was that people (just like you and I) are just wrapped up in their own things, and we have to be reminded that as excited as WE are to be making the calls & offering the service, that they are just not as excited about it all, which is ok. I'm not trying to get people as interested in our work as we are, and if they only "care about stopping the squeaking noise" or whatever their issue was, well....if you did that for them, that's just what was expected. Our followup calls only served to plant a seed in their mind that we care. My favorite notion is when an average patron of mind finds themselves lost and wandering into one of my competitors......NOW they'll see the difference, and when they do, they'll be wondering why THEY didn't follow up with them or make all the extra little effort...
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One of our service advisors made a suggestion recently that has really paid off. On Monday mornings, we used to print out a list of all the customers that came to us the previous week, and just "fit in" the phone calls a few at a time, when we could, leaving messages if they didn't pick up. Once we were through the list, we shredded it, and then fielded any return calls that happened to come through. My advisor said that he's been tracking our contact ratio. That is, he said he though it was sad that we weren't really reaching that many people using this method. (I think the number was as low as 8%). All the rest didn't answer, or we left messages and THEN they never responded. The last couple of weeks, all on their own, my service staff changed the program, tracking their new results. On Monday, they print the list, split it between all of them (There are 3), and vowed thhey would call EVERYONE on their list that day, but not leave any messages at all. The customers they reached, they noted the result of the call, including any comments they felt were inportant. On Tuesday, they did it again, and called ALL the remaining numbers, still not leaving any messages. On Wednesday, they did it the same way, STILL not leaving messages. On Thursday, they called again, leaving a short message about how we'd been trying to reach them, and that we only wanted to make sure their experience was pleasant, and that they were staisfied with the quality of the service they received. On Friday, however, they then sent a short text message (copy/paste worked well) that just said, "Thank you SO much for choosing us. Sorry if we bothered you by calling, but it's just that we really want you to know how much your business means to us." The contact ratio for the 2 weeks they did this was 68%. We connected with 68% of the people we served, and got valuable feedback in the process. Of course, people were largely more apt to text us back than to call...but we're counting that as engagement, especially since the result was so positive. Any thoughts?
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Oh...by the way: http://www.autoshopowner.com/topic/10097-price-just-isnt-everything
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Alas, Joe - what a doozy of a post to throw out on a Friday! I couldn't agree more about not giving prices over the phone. The only pricing my staff is allowed to give over the phone is that which is represented by any of our advertised, "most cars" pricing, such as oil changes, fluid exchange services,basic A/C service, etc. As a matter of fact, I've proven time and again that if a price-shopper calls us on the phone asking for a price for repair service, giving them the price over the phone is a near-guarantee that we won't win the job, and earn their business. On the other hand, handling price shoppers according to our process DOES, in fact, increase our car count, new customer count, and increases our sales exponentially over caving and thinking we're somehow doing them a service by yielding to their ridiculous request. Again...a dentist doesn't quote prices. A doctor doesn't quote prices, (and they even make you pay for the, ahem, testing...EVEN if you buy the medicine they later prescribe), nor does any other professional person...unless its a packaged, "Most Cases" type service. The first thing we need to do is make sure that the person we're talking to falls into the category of "Price-Shopper". This is NOT just anyone that happens to be asking for a price. The basic premise I fall back on when training an advisor is that they need to educate our customers just enough to give them the ability to make an informed decision about the nature of the recommended services their vehicle needs. You can't do that over the phone. One of the simpleset, most powerful ways we accomplish this is by injecting the following into the conversation: "Mr. Smith, I understand why you're calling, and believe me...no one knows better how costly some repairs can be than we do, but I can tell you what the single most expensive part is that you'll EVER put on your car, and I'll always be correct. Since he apparently wants to talk about prices, I inform him that the most expensive part you'll ever put on your car is the part that you absolutely don't NEED. With that in mind, I explain to him that the process we have in place is intended to protect him from ever having work done that doesn't target his primary concern. (As a side note, by the way, this is a BEAUTIFUL place to tell your garden-variety price shopper all about Repairpal.) I like the previous comment regarding our value proposition. (Ok, those are MY words) Are you the low-price leader in your marketplace? If you are, then throw prices at everyone that calls. Most of us are not. I take the time to practice selling them on why they should come to us, and let us "throw our hat into the ring" with all the rest of our competitors who apparently have no problem giving a price on the phone. There's ALWAYS an angle, and no matter what they say, our advisors are trained to give the answer that results in one thing, and one thing only: GET THE CAR TO THE SHOP. Price shoppers who have been rightfully convinced that it is truy in their best interest to allow us the privilege of offering a free "quick-peek" inspection (If you're inclined to offer that), have come in with sometimes as many as 7 or 8 other estimates jotted down on a piece of paper, only to gleefully give us permission to service their car, sometimes at a final price that was 10 or 20% more than their best "phone estimate" Why? Because we're able to show them how much we truly care about getting the job done, getting it done right, not wasting their time, and the 50 other reasons that all build VALUE into the proposition of allowing us to work with them in achieving their vehicle repair/maintenance endgame scenario. Heck...it's become standard practice to tell people that in the end, if they take us up on our offer to give them a free inspection & the estimate of their asking, that if they like what we have to say, then GREAT. If not, we always tell them they are authorized to ball up the estimate, and throw it back at us, and we can all still be friends. We are in the business of meeting people and making friends...and you can't do that as effectively on the phone, only. The hardcore, meanie-head, sometimes crazy sounding automatons that just keep repeating, "But I need a price. I need a price." Those guys? They represent a VERY small minority of the market, (I've read them to be as low as only 11% of the universe of prospects) and you'd be smarter to LET them be mad at you and go elsewhere so they can give your competitors a hard time, cut corners, and beat them up on every last little thing, wasting their time, while YOU focus on the customers that are more interested in keeping their cars maintained, and those who appreciate a professional, capable, honest mechanic. What's the very best thing that can happen? They finally come in because you caved, and told them it will be $125? If so, you better not try to charge them for a gasket that is also necessary, or worse yet, tell them their widget wasn't the problem all along...either way, those kinds of people will always want to make someone ELSE responsbile for the troubles they have on their vehicle, and conveniently forget that it was all in response to the campaign they launched to squeeze the last nickel out of someone over the phone. Nah. I'm ok if they go somewhere else. I just make sure to plant the seed (politely) that if it doesn't happen to work out for them wherever they end up ,that I'll be happy to give them that inspection on their first visit, andmke absolutely certain we'll work as hard as we have to in making sure we meet or exceed their expectations. Just one man's blissful avoidance of people who'd rather argue over $5 than have the doctor give them a real assessment.
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I think there may be another way to look at this, and although it doesn't change the math, I can tell you, it's just how I decided to deal with it so I could move on with my life, and not "fester" as I'm unfortunately, prone to do sometimes. The warranty on the part isn't hard to understand. We'd like to believe that the parts that are made to a higher standard just naturally carry a longer warranty period, but what is the warranty, anyhow? Isn't the warranty on the part just the manufacturer's way of putting some "wiggle room" into the cost structure of our business, so we can feel confortable installing their brand, knowing that if the mean ol' manufacturers make a product that just doesn't seem to hold up, that they'll (of course) give us another? So it's decided, I think, that the parts warranty is easy to figure out. The labor warranty, well, that's where I had to make some hard decisions, and if you'll bear with me, I think I can offer a solution that will make some of you smile, knowing you'll get paid for EVERY labor claim, to the very penny, that you deserve. First of all, here's what I think of labor claims: The labor is mine. The labor is what I provide, and the part of the service that's most personal, and DEFINITELY between me and my customer. So, for the record, just like a distributor/manufacturer is willing to give up another new part that cost them just as much to make as the first one, because they are taking care of THEIR customer, I'm willing to give up my time to take care of MY customer. (Don't scream at me just yet - remember, I said you're gonna get paid for it, right?) This is a fallen, fractured, rusting and busting world. That's what makes it exciting for us to be in such a business....we KNOW that the cars are going to continue to break down. Trying to hold the manufacturer or distributor to carrying the full weight of a labor claim isn't any different that asking me to carry some responsibility in the replacement of a part I had no involvement in designing or manufacturing. The way my business operates is this - my vendors, my customers, and me...we're the dream team! Between the three of us, putting together our collective, rational heads, we can overcome any situation, and resolve it in a way that's fair to everyone. So here's what I've done: First, I work with aftermarket suppliers that are willing to carry SOME of the responsibility for all costs incurred if the parts they are representing don't hold up for reasons unexplained, or more obviously related to something in the manufacturing process. Not only will they get me replacement parts, but they'll typically be able/willing to give me $25-$35 on the hour. If you're getting $50, then I applaud you. If your labor rate is anywhere near $100 an hour, then you've got close to half your labor paid for without batting an eye. Second, for the love of Pete...don't fear getting correct, profitable parts margins! When people ask why the part they get from their local parts store is $11 and your estimate is reflecting a charge of $25.50....tell them the truth! Reputable installers charge a markup on their parts. Our margin runs between 55 & 60%, depending on the starting cost of the part. If you're running healthy margins to begin with on everything from a cotter pin to a $300 starter, TRUST ME...the money is in the bank, and you can afford to give the customer in front of you a break by standing tall behind the part you put in. I worked as a consultant to a shop that had 3 locations, and had been profitable for many years, that wanted to charge the customer the difference between what the labor claim would pay, and what his rate was. Shame on him! If you focus on serving your customers, the money will always follow, without exception. And lastly, (and here's where you're gonna get paid for every labor claim), my advice is easy. I've trained lots of service advisors in the past, and a circumstance that always comes up is when they're struggling with making margin on an estimate, and they don't know what to do. The truth is, they DO know what to do, they're just afraid. Don't be afraid to charge what you NEED to charge to remain profitable! If you're so afraid of pitching the needed services to the customer on the phone for fear of what they might say, then HANG UP! I calculated how many labor claims I typically have in a year, and how many hours of time it accounted for. I cut that number in half, divided by 52 weeks in a year, then by how many labor hours I generally sell in a week. Do you see where I'm going with this? i know EXACTLY how much labor I was "giving away" everytime I assigned a technician to an hour of labor in the bay. I have a pretty good idea how many labor hours will be tied up in a abor claim this year, so all I've done is negotiated the very best deal I can with my suppliers, and spread the difference out across ALL labor hours I sell. That, accompanied with a healthy parts margin, absolutely GUARANTEES that I'm getting paid for my time. I raised my labor rate 13 cents for EVERY hour. That money annually, plus the money I get from my vendor on labor claims at $35/hour...that equals my standard labor rate against all potential labor claims...so we get paid regardless. The best part is that because no one was now worried about the almighty dollar as it related to the question of a labor claim, so everyone relaxed, and was able to give a response that sounded like this: "Well of COURSE we're going to stand behind the part, as well as the labor in this case, Mr. Smith. Although my suppliers don't shield me from all the additional time it'll take to do so, your business with us is far too important to us to let you worry for one moment that your choice in mechanics was a mistake. I hope you'll let us take care of this for you, and you'll continue to count on us in the future, should the need arise." Of course, we KNOW the need will arise, don't we? Remember my rusted, busted commentary? Just one man's approach to not sweating the small stuff.
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I fired my service writer
stowintegrity replied to WrenchWorks's topic in Human Resources, Employees
I don't write estimates much anymore, but I still look over some of the larger estimates when they ask. Our training begins and ends with the simple truth that no matter how "nice" you want to be to someone, if we don't make a profit (margin) on the work we offer, then we won't be in business long enough to be of service to ANYONE. I set the margins in the beginning, and then as I added service staff, I taught them the process as I had been executing it. The service advisors know how far they can go to be "nice" to someone, but they also know that our first step toward being OF service to others is to OFFER service. We build in value anytime we have a tough estimate that needs to be sold. That way, we protect our margins, and leave the customer skipping away happy because they see first hand how eager we are to offer over-the-top customer service. -
Ok, ladies and gentlemen, I've got the final answer from Napa about the circumstances I describe in this thread, and this is the best I can explain it... I talked to a total of six different Napa employees, all managers. I literally climbed the tree of authority, and last spoke to a gentleman who claimed to be Napa's VP. The conversation with him was very polite, and grounded in solid business candor from both sides. The other 5 people I spoke to were SIGNIFICANTLY less qualified to be trying to address my concern, and although I ranted freely to my wife about how I feel about the rest of them, I ill only tell you here that I have no respect at all for any of them. Until I rattled the chains to near the top of the oranization, no one seemed to have a clue what they were talking about, and seemed better suited to have been working the cash register at the local gas station, answering questions about why the green slurpie machine wasn't working right now. Alas, I will NOT be carrying my nearly million dollars worth of parts purchasing through the Napa doors, and here's why: The Napacare program was designed by their corporate office as a tool for the Napa parts stores to use to draw in more business in their local markets. Period. Napa's corporate position is to allow the local store owners ABSOLUTE authority over who they sell parts to, and who, in fact, they allow the designation of becoming a certified Napa Autocare center. The VP I spoke to indicated clearly that the Napa store owners are NOT partners, they're not seen as franchise participants...they are CUSTOMERS of Napa. Yep...Napa Corporate sees them as their customers, not the installers, and surely not the end-use consumers. THAT, in my mind, completely explains why no one seems to care whether the local Napa store owner has been making such dramatically bizarre decisions about who he feels like selling parts to. So, the quick answer is this: The VP confirmed that no one in the corporate office, upon launching the Napacare program to their customers, ever thought it would necessary to ask, "What if I don't WANT to sell more parts?" I guess I don't like the answer because it cuts across the grain of good business practices, but at least I understand how we got to this point. The VP promised that "if the dynamic of the environent" in my local market was to shift, or anything were to change that might clear the way for us, tha he would make sure that someone would be in touch with us. I thanked him for that, and told him that if that happened, when the Napa suits pulled into one of my parking lots, if they saw someone else's branded logo/colors on my building alonside my own, that they should keep driving, because at that point, it would be too late. It is what it is. Just one man's sorrowful journey through Napa's fields of ignorance.
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UPDATE 7/27/15 Terry Mann is no longer with Napa. he gentleman whom he referred to me via a cc on an email he sent to me on Jun 30th still hasn't gotten back to me. I called today, and they said I need to speak to someone named Ted Hood, who worked alongside Terry in the past; holding the same title. I called the gentleman Terry previously cc'd into the fold, and had a brief, pleasant, and what I thought was a fruitful conversation. He indicated he would look into this, and get back to me, but he failed to do so. I left 2 messages on his voicemail, but as I still hadn't gotten a response, I called their office again today, and got the info on this other gentleman, Ted. I'll let you know how this works out. Either way...i'm starting to wonder if I did something to offend them. Of course, I'm happy to give the benefit of the doubt, as I know full well how chaotic it can be when there's any degree of change or turnover in staff. Here's hoping!
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Wow, 50 filters? I can never get a bearing on the scope of my business as it stacks up against other successful shops. We only stock 20 oil filters, and have a car count of about 55-60 weekly. We'll probably do an oil change on 50-75% of those (in addition to whatever other service/repair they need), and we probably only run into 1-2 filters a week that don't happen to be one's we stock. Am I likely missing a large part of the market's potential?
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Customer raises his voice, So I raise mine!
stowintegrity replied to Joe Marconi's topic in Customer Experience & Reviews
As a part of our official training, our staff is exposed to my somewhat unorthodox method of introducing pop-culture references into my dialogue as a means of making my point stick. You bring to mind a common one, Joe! If any of us have seen the move "Roadhouse" with Patrick Swayze, (a MUST for any man, I think) you may remember the scene where he's talking to the staff of the tavern, telling them his three simple rules. The third rule is simply to "Be nice". My staff has been trained that their job is to be nice. To remember that they're doing a job, and that when a customer is upset for any reason, that it's nothing personal. The policy is that they're to be nice always, until it's time NOT to be nice. When they ask how they're supposed to know when that is, I tell them they won't...but I will. "You are the bouncers and I am the cooler." My staff has been trained to know that I expect them to be professional at all times, even when a customer's voice is raised, but they also know that I will step in (Much like you did, Joe) and use my own God-given gift to make it clear to our customers that while we value their business that neither my staff nor I will ever use language thatis uprofessional, nor will we be in any other way disrespectful, and we won't tolerate it in return from anyone. Somehow, and someway, this process or rank & file has allowed us to take some very upset customers from the brink of apparent meltdown to an apologetic surrender by convincing them of one simple fact: We are the only people in the room sincerely interested in helping them with whatever their concerns are. Yelling at us will no sooner get them the result they hope for as it will address the mechanical nature of their problem. I have had to ask an angry customer over the years if they'd like the opportunity to scream & yell at someone before we get down to the actual business of addressing their problem. If they want someone to yell at - I make sure everyone knows that I'm the only one who can satisfy that goal. My staff, I tell them, is paid generously to care for the needs of those we hope to serve, not be a whipping post for someone having a bad day. I guess I don't expect all of you to believe it's easy, but I can tell you that I've earned a real sense of deep respect from my staff because over the years they know that I'm not one to run away from a difficult situation. I check my head, make sure my heart is in the right place, and do everything I can to try to be of service. However, in the words of the late, great 80's rap group, "Whodini",: "Don't think I'm soft, just because I'm humble" To my customers who's brains are sometimes mis-firing...there's generally no need to try to kill a butterfly with a hand-grenade. -
We recently added another mechanic to a veteran team, and as it's been more than a year since we needed to hire anyone, I forgot about the patience it takes to get a new employee acclimated to our processes. New team members who are experienced are sometimes more difficult to train than those without that experience, as they bring bad habits with them The process is taxing to say the least, and it's ben a stark reminder to all the rest of us that we've been working together so long, we've begun to take for granted that everyone uses the same language, and applies the steps of our process the same. The new guy (who's personable, and knows quite a bit about cars) has been a real sport, as it seems like we've had to stop him in his tracks pretty often to course-correct. Pop Quiz: How many times should you have to tell someone something before you can expect them to perform their task the way it's supposed to be done?
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"Selling a part at cost is insane IMHO. I have 2 reasons for parts markup; 1. To make a profit and stay in business 2. Because I warranty that part and depending on what parts fail (as it happens to us all) we may just break even with all the previous parts we've sold that week." - Phynny I agree completely. I often find myself openly admitting to customers that I make a profit on EVERY part I install. This is a conversation most frrequently had when talking about estimates that include dealer/OEM parts. My customers sometimes ask why, if the widget I'm getting from the dealer has a list price of $100, why are they being asked to pay more? Personally, to Phynny's point, we are unashamed rto let them know that we mark up most dealer parts by 20-25%. An OEM part that has a "List" price of $100 generally costs me $75, and it's marked up to $125. Even using this method, my parts margin isn't what I can usually get on aftermarket parts, but I refuse to "give away parts". If someone is bent on wanting the part for the list price, I invite them to get the part themself from their neighborhood Dealer parts counter, and bring it to me. I'm happy to install new, customer-supplied parts. My inner joy is derived from the fact that my customers are entitled to a 20% discount off ALL labor when they permit me to provide the quality parts we sell, and offer the strong warranties we have. If they provide the part, the labor discount is lost, and the warranty of the service is removed. It's not generally a good idea to be mad because the $60 heater core you need installed is costing you $85 on my estimate. If you want to save the money on my fair margin on the part, you lose the warranty of the work, and end up paying MUCH mmore in labor on a job like that. It warms my heart, when my customers come to the conclusion that they need to trust SOMEONE to help them, and since my practices are transparent, competitive, and fair, most of the time they end up saying the words for me: "Well, I guess since you're the people we trust, then we need to make sure we further trust the parts you're installing, and additionally embrace the "No Hassle" warranty on the parts & service. They walk away assured that we'll do a great job, and stand behind our work. Love your mechanic? LET HIM EARN A LIVING! I need a nap.
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We do this at our shop, as well. When we have the opportunity to do so, we will typically offer a more narrow margin on the part price, and make up the lost margin on our labor (service). Someone much smarter than I once said, "Never discount your labor...it's what you do, and who you are to the customer." In this way of looking at the proposition, if I thought I was dealing with someone price-concious of the discount parts at a big-box retailer, I've often written the fair estimate, pricing the parts at as little as 10^ over the commercial "walk-in" price, and adjust the labor to ultimately reflect the same, fair price I started with. The folks so focused on the price of the widget from XYZ Auto Parts will see that my itemized estimate has "the same" parts for only a little more, and the bottom line proposition is generally bolstered by the over-the-top value selling we do at our counter. People only want to feel like they're getting a fair shake...so make'em feel good about you!